AMD delayed its own ARM-based Opteron microprocessor, code-named Seattle, until the fourth quarter of this year. ARM, which is supported by many chip makers, including AMD, is dominant in smartphones and tablets, but it is having a harder time penetrating the multibillion-dollar market for high-end server chips.

Su said in an analyst conference call that the company expects to see “modest production shipments” of Seattle in the fourth quarter. Meanwhile, AMD’s Intel-compatible “x86” server chips will be the company’s mainstay product offering for data centers.

AMD’s third quarter was weaker than expected. For the fourth quarter, AMD expects revenues to fall 10 percent sequentially from the third quarter, due to a seasonal decline in semi-custom chip sales. Computing and graphics segment revenue is expected to increase sequentially, and non-GAAP gross margin is expected to be at 30 percent. AMD expects cash to be flat at about $750 million. AMD is laying off about 5 percent of its staff.